Chinese Smartphone Makers Embrace Foldables and AI in September Product Launches
Goldman Sachs released an extensive analysis on September 17, 2025, examining the latest developments in China's smartphone market, highlighting the rapid expansion of foldable devices and the proliferation of AI features across mid-to-high-end models. The report, authored by Allen Chang, Verena Jeng, and Xuan Zhang, provides crucial insights into pricing strategies and technological upgrades that are reshaping the competitive landscape.
Mixed Pricing Signals Amid Premium Focus
The investment bank's analysis of models launched between late August and early September 2025 reveals a market increasingly focused on premium segments, with new releases priced between US196−196−2,517. However, pricing strategies appear fragmented, with manufacturers adopting divergent approaches to market positioning.
According to Goldman's data, Honor Magic V Flip 2 commanded a 10% price premium over its predecessor at US$ 769, while Huawei′s Mate XTs Ultimate saw an otable $2,517 (down from US$ 2,797). The Oppo A6 Pro similarly dropped $252, suggesting manufacturers are testing different strategies to capture market share in an increasingly competitive environment.
AI Integration Becomes Standard Across Price Points
The report emphasizes the democratization of artificial intelligence features, previously confined to flagship models, now appearing across mid-to-high-end devices. Huawei's Mate XTs Ultimate incorporates HarmonyOS supporting multiple AI applications through the Celia AI assistant, covering travel planning, translation, and education functions.
Honor's Magic V Flip 2 introduces AI image-to-video functionality alongside photography enhancements, while its YOYO AI Agent assists with navigation and daily travel tasks. Even mid-range offerings like the Oppo A6 Pro now feature AI photography editing capabilities, indicating the technology's rapid market penetration.
Hardware Upgrades Drive Performance Gains
Semiconductor improvements remain a key differentiator, with all new models showing significant system-on-chip (SoC) upgrades. Huawei's Mate XTs Ultimate features the upgraded Kirin 9020 (7nm), delivering 36% performance improvements over its predecessor. Honor transitioned from Snapdragon 8+ Gen 1 to the more advanced Snapdragon 8 Gen 3, while both Oppo and Vivo moved from MediaTek Dimensity 6300 (6nm) to the superior Dimensity 7300 (4nm).
Camera technology continues evolving, particularly in premium segments. Huawei upgraded its ultrawide camera from 12MP to 40MP, while Honor dramatically enhanced its photography capabilities with a 200MP wide camera and 50MP ultrawide system, replacing the previous 50MP wide and 12MP ultrawide configuration.
Supply Chain Momentum Building
Goldman's analysis of component suppliers reveals encouraging trends, with smartphone camera and fingerprint module suppliers reporting average revenue and shipment growth of 9% year-over-year and 15% month-over-month in August 2025. This represents an improvement from July's 1% YoY and 10% MoM figures, reflecting both specification upgrades and improved seasonality patterns.
Upcoming Pipeline Suggests Continued Innovation
Looking ahead, Goldman anticipates more flagship releases in late September through October, featuring enhanced camera systems, extended battery life, and improved displays. Honor's Magic 8 promises longer battery life with AI multimodal sensing capabilities, while Realme's GT8 Series will feature substantial 8200mAh battery capacity with Smart Power-Saving Engine technology.
The investment bank maintains Buy ratings on key supply chain beneficiaries including AAC Technologies, Largan Precision, Lingyi iTech (Guangdong) Company, BYD Electronic, OmniVision Group, and Taiwan Semiconductor Manufacturing Company.
Goldman's comprehensive analysis suggests Chinese smartphone manufacturers are successfully navigating market challenges through strategic pricing, aggressive AI integration, and continued hardware innovation, positioning themselves for sustained growth in the premium segment while expanding foldable device adoption across broader consumer bases.